US stocks rise on solid economic data

In this Friday, June 28, 2013, photo, trader Kevin Colter, left, works on the floor of the New York Stock Exchange. US stocks spent Monday, July 1, 2013, in positive territory on generally strong manufacturing data, although leading indices closed well below their intraday highs. AP PHOTO/RICHARD DREW

NEW YORK CITY—US stocks spent Monday in positive territory on generally strong manufacturing data, although leading indices closed well below their intraday highs.

The Dow Jones Industrial Average gained 65.36 (0.44 percent) at 14,974.96. The Dow rose as high as 15,083 earlier in the session.

Brent Schutte, a market strategist at BMO Private Bank, said the monthly Institute for Supply Management reading of US manufacturing activity was “pretty good.”

The ISM purchasing managers index rose to 50.9 in June from a contraction reading of 49.0 in May. At the same time, the ISM showed manufacturing employment contracted for the first time since September 2009.

“I don’t know if bad news is good news or good news is good news,” Schutte said. Markets “seem to be in this tug-of-war period.”

Apple rose 3.2 percent after Raymond James upgraded the technology giant to “strong buy,” citing increased iPhone shipments and a belief that near-term trends will stabilize, according to Market Watch.

Online game developer Zynga rose 10.4 percent on reports that the company was set to appoint Microsoft executive Don Mattrick to a senior post. After the market closed, Zynga announced that Mattrick would become chief executive.

Electric car manufacturer Tesla jumped 9.2 percent to $117.18 after Jefferies raised its stock price target to $130 based on higher estimates of auto deliveries. “Despite the massive run in the stock…(Tesla) is one of the best growth stories in the market today,” Jefferies said.

Bond prices were mixed. The yield on the 10-year US Treasury was 2.49 percent, up from 2.48 percent Friday, while the 30-year slipped to 3.49 percent from 3.50 percent. Bond prices move inversely to yields.